What a Peach

Extensive coverage of the 2013 NACS Show in Atlanta.

Best Strategies for Increasing Beer Sales

Top-quartile retailers sell nearly seven times as much beer as those in the fourth quartile, according to a new report by Anheuser-Busch, St. Louis. The difference, according to A-B’s C.J. Watson, is a balanced approach and a consistent pricing strategy.

Watson, vice president of category management, reported the results of the A-B study during a NACS Show workshop titled “Getting Crafty with Beer Sales.” The study, which included 40,000 convenience stores across the United States, unveiled the following beer quartile sales figures:

Top-quartile retailers sold $315,272 in beer.

Second quartile: $193,739.

Third quartile: $130,913.

Fourth quartile: $46,045.

Part of the study took a closer look at more than 300 stores, which showed a balanced beer strategy was most often successful.

According to the report:

Retailers who focused on craft beers at the expense of premium beers succeeded in outperforming the c-store industry average only 21% of the time.

Those that focused on premium beers and downplayed craft beers succeeded 70% of the time.

That said, a beer strategy that highlighted both craft and premium beers beat the industry average 90% of the time.

Watson said a balanced approach more closely reflects the way consumers think about beer. “People want all segments, so we have to manage all of them,” he said.

The top quartile also has a consistent pricing strategy, maintaining craft prices that index at 175 compared to premium beer prices—i.e., if an average six-pack of premium beer costs $6, a six-pack of a craft beer costs 75% more, or $10.50.

It’s a matter of setting expectations for the consumer, Watson said: “If you’re not asking them to pay more consistently, how can we expect them to trade up regularly?”

Since 2003 CSP magazine has ranked No. 1 in readership and market share over all other industry publications. C-store marketers have identified CSP as the preferred magazine source for their trade marketing communications. With industry-leading, highly targeted circulation to more than 100,000 subscribers, CSP reaches the key convenience retailing decision-makers fifteen times a year.